What are the signs that you need to get a new credit card? You may need to do this even if you already have a credit card, as not all credit cards are the same. Here we’ll discuss four major indicators that tell you that you may need a new credit card.
One: You want to accrue rewards or get better ones
Do you get a generous amount in rewards or as cash back for the normal purchases you make? Whether you use the card mostly for buying groceries or for airline travel, you would benefit from a card that aligns with how you’ll use it. So shop around and pick the plan that best suits your lifestyle.
Two: You are paying an annual fee
Is it ever worth it to pay an annual fee? Sometimes it can be – for example, for frequent flyers, some travel reward plans are worth it despite their charging a fee. However, for most people, annual fees are simply not worth it. For the average person, the best credit card is one that charges no annual fees.
Three: Poor or nonexistent customer service
Many people don’t think of this because they are looking at rewards programs, interest rates, fees, and other financial factors when they apply for a credit card. However, having decent customer service is also important, particularly if something goes wrong. If you find it hard to work with customer service personnel at your credit card company or, even worse, find it impossible to get through to them – then this might not be the credit card for you.
Four: You are paying a lot in interest
The best way to avoid paying interest – pay your balance off each month. If you are disciplined about doing this, it may not matter if your credit card charges a high-interest rate.
However, even if you plan to never carry a balance – unexpected things can happen. Let’s say you lose your job, or your car breaks down, and you need to have it fixed. These types of unanticipated events can affect your ability to remain debt-free. In the first case, you may want to make minimum payments until you get a new job. In the second case, the expenses could overwhelm your monthly budget. In either situation, you’ll want to be paying the lowest interest rate possible for your outstanding balance.
Most of these considerations are well known to older people who have had credit cards for years and have learned how to navigate the market.
What if you are just getting started, however? Should you get a credit card, and what is the age to get a credit card? As the SoFi Learn site explains, you must be at least 18 years of age in order to get your own credit card. However, until you are 21, you may face restrictions. These rules were put into place to help protect younger consumers from being overwhelmed with too high a debt load. If you are new to the world of credit, then take the time to check out other articles on the SoFi site. They will give you a lot of good information.